Budget 2021: governor looks to save $2.5 billion dollars in Medicaid costs


ALBANY, N.Y. (NEWS10)- In the N.Y. State of the Budget Governor Andrew Cuomo said local governments are going to be held more responsible for increased Medicaid costs. He said since the state started paying local shares of the program in 2013, rates have steadily increased.

The governor said there are 6 million people on Medicaid in N.Y. but that the state spent $20 billion to cover local government shares. He said it’s good people are in the program but it also has to be financially stable.

In 2011, the state cut Medicaid costs under the Medicaid Redesign Team (MRT). The governor says the group will be called upon once again to help save the state $2.5 billion to close shortfalls created by Medicaid costs.

The MRTII will be responsible for restructuring the Medicaid program in order to address industry efficiency problems and find additional revenue, as well as root out waste, abuse and fraud, with zero impact to local government’s and beneficiaries he said.

Governor Cuomo attributes the increase in Medicaid costs to lack of local government accountability. He said there is currently no incentive for local governments to watch Medicaid spending.

He said a new proposal for local governments will help provide incentive and accountability. Local government’s that stay below a 3% growth in Medicaid costs will receive 25% of the money they save. Local governments that go above an increase of 3% growth would be required to pay the additional annual increase.

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